Investment by Foreign Portfolio Investors (FPI) in Government Securities Medium Term Framework – Review

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.... - Review Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 3, 2000, as amended from time to time. Review of the Medium term Framework 2. The current Medium Term Framework (MT....

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..... In order to recalibrate the Framework to meet the objective of a preference for long-term investors and also with a view to manage the macro-prudential implications of evolving capital flows, the MTF has been reviewed. Based on the review, the following modifications are made to the Framework. a. The overall cap of 5% for Central Government securities (G-Secs) and 2% for State Development Loa....

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....tral Government Securities and State Development Loans (SDLs) for the quarter July-September 2017 are increased by INR 110 billion and INR 61 billion, respectively, and allocated as under:- Limits for FPI investment in Government Securities (INR Billion)   Central Government securities State Development Loans Aggregate General Long Term Total General Long Term....